Trevor Milton, founder and executive chairman of Nikola is leaving the electric truck start up as the US Securities Exchange Commission (SEC) investigate the company for fraud.
There is still not much detail about the SEC fraud investigation at Nikola. Yet, it seems to be serious enough for its founder and executive chairman to be stepping down and leaving the company.
“Nikola is truly in my blood and always will be, and the focus should be on the Company and its world-changing mission, not me. So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman,” Milton said in a statement that Financial Times obtained.
Milton had recently become a billionaire due to increase in Nikola valuation.
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Not over a week ago, General Motors had reached a billion-dollar deal with Nikola. The duo would be making a new generation of electric trucks with Nikola doing most of the work in the battery department. The deal had seen the value of stocks of both companies rise in the market.
With Trevor Milton leaving, Stephen Girsky will be replacing him. Girsky had been vice-chairman of General Motors at one time and is currently a board member at Nikola.
Nikola had been making waves with its electric semi-trucks and one popular one called the Badger; which is a zero-emission vehicle. The company’s fraud problems arose after a research firm, Hindenber Research, accused it of illegal practices.
This had led the US Securities Exchange Commission (SEC) to beam its lights on Nikola. Meanwhile, amid the fraud accusations, Nikola has denied any wrong doing.
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